Tune Air sells shares in AirAsia

Tune Air sells shares in AirAsia

KUALA LUMPUR: AirAsia Bhd. said its biggest shareholder, Tune Air Sdn., sold 20 million shares in Southeast Asia's largest discount carrier to an existing shareholder, trimming its stake to 43 percent.

The sale is "made to an existing shareholder who has shown confidence in the company and its long-term prospects," AirAsia Executive Director Kamarudin Meranun said in an e-mailed statement on Friday. It didn't disclose the buyer or the price.

Tune Air and AirAsia's chief financial officer on Nov. 8 sold a 2.6 percent stake for 94.4 million ringgit (US$25 million) to Malaysia's largest pension fund and other financial institutions. Tune Air sold 20 million shares and Mohd Azmi Razali sold 40 million shares.

Friday's sale matched off-market trades totaling 20 million shares, or a 0.9 percent stake, transacted on Thursday at 1.64 ringgit each, according to stock market data. The stake sold is valued at 32.8 million ringgit.

The Sepang, Selangor state-based airline's stock has risen 5.8 percent in a month, making it the fifth-best performing stock on Malaysia's stock exchange. The benchmark Composite Index fell 3.2 percent in the same period.

AirAsia shares fell 1 sen, or 0.6 percent, to 1.63 ringgit on Friday, its second day of declines. -- Bloomberg